When are the Furniture, Fixtures & Equipment costs due for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
a or Crowne Plaza Suites hotel.
These estimates do not include the cost of land and contingency funds or other items that Holiday cannot estimate.
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount | Method of Payment and When Due | To Whom Payment Is to be Made |
|---|---|---|---|
| Application Fee | $125,000 |
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the cost for Furniture, Fixtures & Equipment, which ranges from $5,414,900 to $8,171,000, is due 'As required By suppliers' and is to be paid to the suppliers. This means the payment schedule will be determined by the agreements you make with the various suppliers providing these items for your Crowne Plaza hotel.
This is a significant investment, and the 'as required' payment term indicates that franchisees need to carefully negotiate payment schedules with suppliers. Unlike some franchise fees that are paid to the franchisor, this substantial cost is paid directly to third-party vendors.
Prospective Crowne Plaza franchisees should obtain detailed quotes from multiple suppliers and understand their payment terms before making any commitments. It is crucial to factor these payment schedules into your overall financing plan for the franchise. Understanding the specific requirements of each supplier will allow for better financial planning and management during the setup phase of the Crowne Plaza hotel.